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Does Job Satisfaction Increase Sales and Customer Satisfaction? Evidence from Retail Banking in South Korea


  • Gil Ricard

    () (Ringgold standard institution - Business School, Johns Hopkins University, Baltimore, Maryland, USA)

  • Kim Myongjin

    () (Economics Department, University of Oklahoma, 308 Cate center drive, Norman, Oklahoma 73019-0390USA)

  • Koo Inhyouk

    () (IE Business School, Madrid, Spain)


This paper estimates the causal relationship between job satisfaction and worker productivity. Using personnel records from a retail bank in South Korea, we show that branch productivity is positively associated to average job satisfaction, but negatively to its standard deviation. We address endogeneity concerns using IV strategies and find that while higher job satisfaction may increase short term productivity through sales to existing customers, excessive sales to existing customers may hurt customer satisfaction and willingness to recommend in the long run. Our findings suggest that average job satisfaction and its dispersion are equally important to understand worker productivity.

Suggested Citation

  • Gil Ricard & Kim Myongjin & Koo Inhyouk, 2017. "Does Job Satisfaction Increase Sales and Customer Satisfaction? Evidence from Retail Banking in South Korea," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(3), pages 1-18, July.
  • Handle: RePEc:bpj:bejeap:v:17:y:2017:i:3:p:18:n:4

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    More about this item


    productivity; job satisfaction; customer satisfaction; word of mouth;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General


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